CNPC will be one of the first companies to participate in the pilot program for state-owned enterprise reform

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According to Bloomberg, sources say that as part of these reform trials, China’s largest oil and gas company, PetroChina, will become a strategic holding company and will no longer be in charge of the day-to-day operations of its listed and unlisted subsidiaries. According to people familiar with the matter, the reforms will grant subsidiary companies greater management autonomy and accelerate the reform of state-owned enterprises toward a mixed-ownership structure. As the information has not been made public, the source requested anonymity. The new holding company will make capital and strategic decisions for both listed and unlisted entities. CNPC Group seeks to accelerate the divestiture of its subsidiaries through reforms in order to enable them to operate independently. According to people familiar with the matter, CNPC’s reform plan is a slow process that will take many years to implement. Reports suggest that China National Petroleum and Natural Gas Group is considering spinning off its oilfield services business for an initial public offering. A spokesperson for CNPC in Beijing did not respond to Bloomberg’s email requesting comments; the National Development and Reform Commission and the State-owned Assets Supervision and Administration Commission did not reply to fax requests. Source: NetEase Finance